Stronger Ginger Brew product introduction at Expo West in March leads to increased distribution and retail opportunities.

Continued plant upgrades to increase plant capacity

Reed's enters 1,300+ new doors in on premise and independent stores, and 900+ new doors in conventional supermarkets in first quarter

Same store sales growth in conventional supermarkets is strong and brand momentum continues as measured by Spins/IRI syndicated data in conventional supermarkets over latest 52 weeks

Exhibition at Nightclub & Bar show leads to partnership with one of the largest wine & spirits leaders in the spirits industry

Chris Reed, Founder and CEO of Reed's, Inc., stated, "Our momentum continues as evidenced by our twenty plus quarters of double digit sales growth. Consumer demand is strong across all channels for our premium craft sodas and we are capitalizing on these opportunities. Of particular strength was the Reed's Ginger Brew line that achieved record sales of $5 million in the first quarter. Gross margins recovered significantly versus the fourth quarter last year as we saw improvement in commodity prices that impacted margins in the last half of 2014."

"We continue to build out our management team infrastructure that is now led by experienced beverage industry veterans with the expertise to operationally support the sales growth that we are experiencing. Leading the charge to drive our operational capabilities as we accelerate, we hired Mark Beaton to serve as our new Chief Operating Officer. Mark was previously VP of Operations at Dr. Pepper Snapple Group. Today we announced that Dan Miles has been appointed Chief Financial Officer. Dan has 30 plus years of financial management experience starting at Ernst & Young, and includes almost 20 years of beverage experience with Pepsi Bottling and Miller Coors where he held senior finance positions in both the field and in the corporate offices."

"The beverage market continues to trend in our favor as major retailers look to Reed's to supply the next generation of all natural GMO-free premium craft sodas. I'm beefing up management to handle the acceleration in sales that these conversations are creating. We continue to be excited about the response to our latest line extension, Reed's Stronger Ginger Brew. I would not be surprised if it eventually becomes our top beverage based on early responses. We expect to see steady growth in 2015 and margins should continue to improve throughout the year due to our new plant projects and favorable commodity price trends," Reed concluded.

For the full year 2015, the company's net sales target is $50 million with moderate profitability.

The Company will conduct a conference call at 4:30 PM EDT on May 11th to discuss its 2015 fiscal first quarter results and outlook for the future. To participate in the call, please dial the following number 5 to 10 minutes prior to the scheduled call time:

Reed's, Inc. makes the top-selling natural sodas in the natural foods industry sold in over 15,000 natural food and mainstream supermarkets nationwide. In addition, Reed's products can be found in convenience stores, bars, restaurants and gourmet retailers. The company's products can also be found in Canada, Mexico and other international markets. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured, and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The Company owns the top-selling root beer line in natural foods, the Virgil's Root Beer product line, and a top-selling cola line in natural foods, the China Cola product line. In 2012, the Company launched Reed's Culture Club Kombucha line of organic live beverages. Other product lines include: Reed's Ginger Candies and Reed's Ginger Ice Creams. In 2009, Reed's started producing private label natural beverages for select national chains.

For more information about Reed's, please visit the Company's website at: http://www.reedsinc.com or call 800-99-REEDS.

Some portions of this press release, particularly those describing Reed's goals and strategies, contain "forward-looking statements." These forward-looking statements can generally be identified as such because the context of the statement will include words, such as "expects," "should," "believes," "anticipates" or words of similar import. Similarly, statements that describe future plans, objectives or goals are also forward-looking statements. While Reed's is working to achieve those goals and strategies, actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. These risks and uncertainties include difficulty in marketing its products and services, maintaining and protecting brand recognition, the need for significant capital, dependence on third party distributors, dependence on third party brewers, increasing costs of fuel and freight, protection of intellectual property, competition and other factors, any of which could have an adverse effect on the business plans of Reed's, its reputation in the industry or its expected financial return from operations and results of operations. In light of significant risks and uncertainties inherent in forward-looking statements included herein, the inclusion of such statements should not be regarded as a representation by Reed's that they will achieve such forward-looking statements. For further details and a discussion of these and other risks and uncertainties, please see our most recent reports on Form 10-K and Form 10-Q, as filed with the Securities and Exchange Commission, as they may be amended from time to time. Reed's undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

REED'S, INC.

CONDENSED BALANCE SHEETS

March 31, 2015

December 31, 2014

(Unaudited)

ASSETS

Current assets:

Cash

$ 1,221,000

$ 959,000

Trade accounts receivable, net of allowance for doubtful accounts and returns and discounts of $252,000 and $253,000, respectively

2,978,000

2,500,000

Inventory, net of reserve for obsolescence of $75,000 and $90,000, respectively

8,360,000

6,306,000

Prepaid inventory

813,000

1,287,000

Prepaid and other current assets

529,000

447,000

Total Current Assets

13,901,000

11,499,000

Property and equipment, net of accumulated depreciation of $3,604,000 and $3,405,000, respectively

5,035,000

4,572,000

Brand names

1,029,000

1,029,000

Total assets

$ 19,965,000

$ 17,100,000

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Accounts payable

$ 7,161,000

$ 5,894,000

Accrued expenses

141,000

130,000

Line of credit

4,113,000

3,009,000

Current portion of long term financing obligation

134,000

134,000

Current portion of capital leases payable

125,000

125,000

Total current liabilities

11,674,000

9,292,000

Long term financing obligation, less current portion, net of discount of $1,017,000 and $1,031,000, respectively

The Company defines modified EBITDA (a non-GAAP measurement) as net loss before interest, taxes, depreciation and amortization, and non-cash expense for securities. Other companies may calculate modified EBITDA differently. Management believes that the presentation of modified EBITDA provides a measure of performance that approximates cash flow before interest expense, and is meaningful to investors.